Household net wealth at all-time high

Dear Straits Times,

I refer to your report on Singaporeans’ all time high net household wealth of $1.16 trillion in the third quarter of this year due largely to the 21% increase in property value from $537 billion last year to $651 billion this year.

The increase in property value also means an increase in property price for future buyers so that the gain by one generation becomes a liability for the next generation. As property price shoots up, future generations will have to pay more for their houses which reduces their disposable income and living standard.

The sharp increase in asset values can only be maintained if we continue to mass import foreigners to sustain demand over supply. However, our small, finite space does not allow us to continue to do this indefinitely. At some point in time, we must control the numbers being imported so that supply can catch up with demand. When that happens, property prices may come down along with our property wealth. In other words, we don’t know how much of our property value is real and how much is froth. Only time can tell.

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